US stocks scored moderate gains Monday, extending Friday’s sharp rally on hopes that the European Central Bank may soon take action to relieve the eurozone sovereign debt crisis.

The Dow Jones Industrial Average closed at 13,117.51, up 21.34 points, or 0.16 per cent.

The tech-rich Nasdaq rose 22.01 (0.74 per cent) to 2,989.91, while the S&P 500, a broad measure of the markets, climbed 3.24 (0.23 per cent) to 1,394.23.

Wall Street stocks started off the week on a positive note “amid growing optimism that the European Central Bank may be set to restart its sovereign debt purchases,” said Charles Schwab & Co. analysts.

For Dick Green at Briefing.com, the stock market was running on momentum, “backed by the belief that the Fed (US Federal Reserve) and the European Central banks will be there when needed.”

In merger and acquisition news, the founder and former chairman of Best Buy, Richard Schulze, announced a bid for full control of the struggling electronics retailer in a deal that values the firm at up to $8.84 billion.

Best Buy shares, which had fallen 38 per cent from their high over the past year at Friday’s close, soared 13.3 per cent to $19.99. Schulze, who owns about 20 per cent of the firm, is offering between $24 and $26 per share.

Knight Capital Group plunged 24.2 per cent to $3.07. The market trader is taking a $400 million capital injection after suffering a technology glitch in trading last week that forced losses of some $440 million.

Bank of America led the Dow higher, up 2.8 per cent, while JPMorgan Chase added 0.6 per cent.

Tyson Foods slid almost 8.0 per cent after reporting quarterly profit that missed Wall Street expectations.

Bond prices rose. The 10-year Treasury yield fell to 1.56 per cent from 1.58 per cent Friday, while the 30-year slipped to 2.65 per cent from 2.66 per cent. Bond yields move inversely to prices.